HK spirits import value surpasses wine for first time since 2007

Hong Kong’s spirits import value skyrocketed by 46 percent between 2016 and 2024 to reach HK$6.48 billion, surpassing the city’s wine import value for the first time since 2007, according to latest figures following last year’s liquor tax cut.

The latest statistics compiled by the Legislative Council Secretariat showed that the value of duty-paid imported spirits surged by nearly 60 percent in the 6.5 months as of April, after the government reduced the liquor tax on spirits.

Despite the surge in spirits import value, Hongkongers drank less than the world average. In 2023, they consumed about 2.2 liters each, compared to the global average of 4.9 liters.

Wine drinking in Hong Kong dropped a lot, down 46 percent to just 0.40 liters per person between 2016 and 2023. Meanwhile, people kept drinking about the same amount of spirits, staying around 0.82 liters per person.

Additionally, Hong Kong’s role as a regional spirits hub continues to grow.

A significant portion of spirits imported into the city is re-exported to other places, with mainland China being a major destination for such trades, representing 26 percent of Hong Kong’s re-export trade in wine and 57 percent in spirits as of 2024.

Currently, the mainland ranks as the tenth-largest market for wine and the fourth-largest for whisky globally.

Meanwhile, the local bar scene continued to struggle amid Hong Kong’s sluggish economic recovery. In 2024, bars made 25 percent less money compared to 2019 before the pandemic, and the number of bars dropped by 24 percent.

In contrast, shops that sell specialty alcohol saw a 20 percent increase over the same period. They have likely benefited from the new tax incentives.

The secretariat expressed confidence that the government’s 90-percentage-point duty reduction on spirits that cost over HK$200 to import will invigorate the local auction scene, transforming the city into a leading global marketplace for fine liquors.

(Cheng Wong)